How to Reduce DSO Without Disrupting Your Operations
Days Sales Outstanding (DSO) is one of the clearest indicators of cash flow health. For many organizations, DSO increases gradually without setting off alarms. Customers are established, invoices go out on time, and payments eventually arrive, but often later than expected.
The result is familiar: more time spent chasing payments, tighter working capital, and less predictability in receivables. Over time, even small delays can limit growth and strain operations.
The good news is that reducing DSO doesn’t require a full process overhaul. Small changes in how payments are requested and accepted can make a meaningful difference.
Common reasons DSO can increase
High DSO is rarely caused by a single issue. More often, it’s the result of everyday friction in the payment process.
Common contributors include:
• Manual invoicing and follow-ups
• Limited payment options
• Delays caused by mailed check payments
• Lack of real-time visibility into payment status
Approaches that help lower DSO
Reducing DSO starts with removing friction and improving timing.
Effective strategies include:
• Offering digital payment options like ACH and credit/debit card
• Sending payment requests promptly and consistently
• Giving customers a clear, simple way to make a payment
• Using real-time reporting to prioritize follow-ups
UTA supports businesses looking to reduce DSO with payment processing solutions designed to simplify and accelerate your cash flow.
Our Payment Request Link solution allows you to send secure, custom-branded payment requests by text or email.
• ACH and credit/debit card acceptance give customers flexible ways to pay.
• Real-time reporting and efficient reconciliation help teams stay ahead of receivables.
• Optional surcharge solutions can help manage card processing costs.
If you’d like to explore ways to improve payment timelines, please flee free to reach out.
Mark Tapia
Vice President Business Development
mtapia@unitedtranzactions.com
800.858.5256 ext 3028.
Direct: 786.264.7028. Payments Made Simple. Business Made Better.
